WASHINGTON (dpa-AFX) - Cryptocurrencies languished in the red zone despite the much-awaited decision on a Strategic Bitcoin Reserve in the U.S. Cryptocurrencies have shed close to 3 percent in the past 24 hours as lingering anxiety ahead of the release of the crucial non-farm payrolls data from the U.S. added to the disappointment surrounding the creation of a Bitcoin Reserve.
President Donald J. Trump on Thursday signed an Executive Order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.
The Strategic Bitcoin Reserve would be capitalized with Bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings. Other agencies would evaluate their legal authority to transfer any Bitcoin owned to the said Reserve. The U.S. would treat Bitcoin as a reserve asset and would not sell Bitcoin deposited into this Reserve. The order also authorizes the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring additional Bitcoin, provided it imposes no incremental costs on American taxpayers.
The Presidential Order also established a U.S. Digital Asset Stockpile, consisting of digital assets other than Bitcoin owned by the Department of Treasury that was forfeited in criminal or civil asset forfeiture proceedings. However, the government would not acquire additional assets for the U.S. Digital Asset Stockpile beyond those obtained through forfeiture proceedings. The Secretary of the Treasury is authorized to determine strategies for responsible stewardship, including potential sales from the U.S. Digital Asset Stockpile.
The development assumes significance ahead of the first-ever crypto summit at the White House, scheduled for Friday. However, markets had anticipated more in a Bitcoin Reserve and are apparently disappointed at the absence of outright government purchases for the Reserve.
At a macro level, market spotlight has turned on the Fed's monetary policy outlook, its mandates of price stability and maximum employment as well as the risks to these. With trade tariff uncertainty seen impacting price pressures and federal government job cuts clouding the labor market outlook, all eyes are now on the monthly jobs data for February.
The U.S. Bureau of Labor Statistics is expected to reveal on Friday morning, an addition of 160 thousand to non-farm payrolls in the month of February, a surge from the 143 thousand recorded in the previous month. The unemployment rate is however expected to remain steady at 4 percent. The average hourly earnings on a month-on-month basis are expected to decline to 0.3 percent from 0.5 percent in the previous month. On a year-on-year basis, the average hourly earnings are seen steady at 4.1 percent.
Weekly data released by the U.S. Department of Labor on Thursday had showed initial jobless claims for the week ended March 1 decreasing to 221 thousand from 242 thousand in the previous week. Markets had expected it to drop to 235 thousand only. The four-week moving average for initial claims, which smoothens any week-to-week volatility however increased to 224.25 thousand from 224 thousand in the previous week.
Even as markets digested the news of the creation of a Bitcoin Reserve and waited anxiously for the payrolls data, overall crypto market capitalization declined to $2.93 trillion implying an overnight loss of 2.96 percent. More than 65 percent of the top 100 cryptocurrencies are trading with overnight losses of more than a percent.
Bearish sentiment towards cryptocurrencies reverberated in the ETF markets also. Outflows from Bitcoin-based ETF products in the U.S. recorded $134 million on Thursday. Ethereum-based ETF products also witnessed outflows of $10 million on the same day.
Bitcoin (BTC) that dominates 60.5 percent of the overall crypto market shed more than 2 percent overnight to trade at $89,172.27. It is currently trading 18 percent below the all-time-high at $109,114.88 recorded on January 20. The original cryptocurrency traded between $91,564.82 and $84,717.68 during the past 24 hours. Despite weekly gains of 11.2 percent, the leading cryptocurrency is trading with losses of 8.8 percent over the 30-day horizon and 4.5 percent on a year-to-date basis.
Ethereum's losses are higher at 3.8 percent in the past 24 hours. Despite weekly gains of 3.6 percent, the leading alternate coin has shed 21 percent over the past 30 days and 34 percent till date in 2025. Ether's current trading price of $2,198.04 is 55 percent below its all-time-high. The most valued alternate coin that dominates 9.04 percent of the overall crypto market ranged between $2,300.51 and $2,103.47 in the past 24 hours.
3rd ranked XRP (XRP) slipped 3.2 percent overnight to trade at $2.54, around 34 percent below the all-time high touched in January 2018. The cryptocurrency has however surged 25 percent in the past week.
5th ranked BNB (BNB) edged down 0.08 percent overnight at its current trading price of $601.92. BNB is currently trading 24 percent below the all-time high touched on December 4, 2024. Despite weekly gains that exceed 5 percent, the cryptocurrency has lost more than 14 percent till date in 2025.
The price of 6th ranked Solana (SOL) dropped 5.2 percent overnight. With weekly gains of 9.8 percent, SOL is currently trading at $143.82, around 51 percent below its record high on November 23, 2024.
8th ranked Cardano (ADA) tumbled 7.9 percent overnight to trade at $0.8821. ADA is currently trading 72 percent below the record high touched in September 2021.
9th ranked Dogecoin (DOGE) slipped almost 3 percent overnight to trade at $0.2040. Having gained more than 10 percent in the past week, DOGE is trading 72 percent below the previous peak scaled in May 2021.
10th ranked TRON (TRX) edged down 0.3 percent overnight to trade at $0.2420. TRX has gained 7.8 percent in the past week. The trading price is 45 percent below the cryptocurrency's all-time high recorded on December 4, 2024.
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